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Steinhoff restructuring begins

Despite warning signs last week that the Steinhoff International proposed lock-up agreement was struggling to attract investor support, the homewares retailing group announced the agreement has become effective as of July 20th.

The parties to the lock-up agreement will now have to implement the restructuring within three months, the terms of which will remain in place for three years, subject to a maturity long stop date of 31 December 2021.

“The company… has received significant support from its external creditor groups through the accession process to the LUA,” an investor release notes.

The company has signalled that creditors who are not yet in support of the agreement may still receive the Lock-Up Fee, in spite of the agreement having already become effective, should they choose to support the agreement now; likely an effort to coax more creditors on board.